Key Terms Theme 1

Question 1

Percentage Change in Price

Answer 1

New Price - Old Price
÷
Old Price x 100

Question 2

Market Share

Answer 2

The % of a market that a business, product or service has.

Question 3

Added Value

Answer 3

When a business chooses to enhance the quality of a core product by providing extras to improve a customer’s utility/experience.

Question 4

Market Size

Answer 4

Measured by volume of sales or value.

Question 5

Above the Line Promotion

Answer 5

Placing adverts using the media.

Question 6

Marketing

Answer 6

A management process involved in identifying, anticipating and satisfying consumer requirements profitably.

Question 7

Advertising

Answer 7

Communication between a business and it’s customers, where images are placed in the media to encourage the purchase of products.

Question 8

Marketing Mix

Answer 8

Price, place, promotion and product - and how a business uses these 4 elements strategically.

Question 9

Aesthetics

Answer 9

What the item looks like.

Question 10

Marketing Strategy

Answer 10

A set of plans that aim to achieve a specific marketing objective.

Question 11

Agent/Broker

Answer 11

Foreign sales agent is a business which represents products from another business in a new country.

Question 12

Mark-up

Answer 12

The amount above cost added to a product before it is placed for sale.

Question 13

Aims

Answer 13

What a business tries to achieve in the long term.

Question 14

Maslow’s Hierarchy of Needs

Answer 14

The order of people’s needs starting with the basic human requirements.

Question 15

Articles of Association

Answer 15

A document that provides details of the internal running of a limited company.

Question 16

Mass Market

Answer 16

Products or services that are sold or advertised to everyone at the same time, in the same way.

Question 17

Authority

Answer 17

This is the power or right to give orders in an association.

Question 18

Matrix Structure

Answer 18

This is a hierarchy design which groups by project and function.

Question 19

Autocratic Leadership

Answer 19

Leader makes all of the decisions.

Question 20

Mechanisation

Answer 20

Method of operating or controlling processes using machinery.

Question 21

Automation

Answer 21

Method of operating or controlling processes by automatic means using devices. Reduces need for human interaction.

Question 22

Merchandising

Answer 22

A promotion specifically at the point of sale of a product.

Question 23

Below the Line Promotion

Answer 23

Any promotion that does not involve using the media.

Question 24

Memorandum of Association

Answer 24

A document that sets out the constitution and states key external details about a limited company.

Question 25

Bonus

Answer 25

A payment in addition to the basic wage for reaching targets or in recognition for service.

Question 26

Motivated

Answer 26

The desire to take action to achieve a goal.

Question 27

Brand Name

Answer 27

A name, term, symbol, sign, design or other feature that allows consumers to identify the goods and services of a business and to differentiate them from those of competitors.

Question 28

Motivators (Hertzberg)

Answer 28

Things at work that result in satisfaction.

Question 29

Boston Matrix

Answer 29

A 2x2 matrix model that analyses a product portfolio according to the growth rate of the market and the relative market share of the products within the market.

Question 30

Multi-Skilling

Answer 30

An employee is trained to do more than one job for example an electrician is trained to plaster walls.

Question 31

Breaking-Bulk

Answer 31

Dividing a large quantity of goods received from a supplier before selling them on in smaller quantities to customers.

Question 32

Mutual Organisation

Answer 32

A business owned by it’s members, who are customers not shareholders.

Question 33

Business Choices

Answer 33

Deciding between alternative uses of resources.

Question 34

Niche Market

Answer 34

A subset of a normal market that caters for specific consumer needs and wants.

Question 35

Certification of Incorporation

Answer 35

A document that declares a business is allowed to trade as a limited company.

Question 36

Normal Good

Answer 36

Products where an increase in consumer’s income means an increase in demand.